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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (63876)	9/6/1998 12:51:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

David, you said That means also that the return on equity touted by some analysts as a positive for DELL might not mean much either. Correct, although not for the reason you site! ROE is meaningless because a change in the financial structure of the company (e.g. increasing leverage by substituting debt for equity or stock buybacks) drastically changes ROE without a change in operating efficiency. This has little to do with the problematic nature of the value of the assets. That's why two other metrics are commonly used: Return on assets under management (ROAM) and return on investment (ROI). Conceptually these are very important numbers because they measure the efficiency with which deployed assets generate returns. This is the financial metric that makes you really appreciate Dell compared to virtually any other company. I have never found another listed company with an ROI to match Dell's. Dell results in this area are truly astounding. TTFN, CTC